$20,000 Instant Asset Write Off Extension
Just a reminder…
The small business asset write off threshold of $20,000 will continue until the 30th of June 2018. This applies to small businesses with a turnover threshold of less than $10 million in the 2017 financial year.
To refresh your memory, the small business instant asset write off applies to small businesses that purchase assets costing less than $20,000.
Under this concession, business owners can deduct 100% of the asset in the financial year they are purchased, rather than having to depreciate the asset over its useful life which could be 10 years for example. .
The asset is to ready to use in the financial year you make your claim. This means the asset needs to be fully installed.
You must be a small business with a turnover under $10 million
Things will change 1 July 2018…..
On the 1st of July 2018 the ATO will be reducing the threshold from $20,000 to $1,000, so now is the time to consider whether you can take advantage of this opportunity.
If you are considering purchasing business assets, give us a call first. We can help make sure you are getting the best deductions for your business.